C.banner abandons ‘inadvisable’ House of Fraser deal
C.banner, the Chinese parent of Hamleys, has abandoned its plan to buy a controlling stake in department store chain House of Fraser.
House of Fraser secured a CVA in June to close 31 of its 59 stores, but this is facing a legal challenge by a group of landlords.
C.banner was to invest £70m in the loss-making chain but said the deal had been ‘rendered impracticable and inadvisable’ and had been ‘terminated with immediate effect.’
‘House of Fraser is in discussions with alternative investors and is exploring options to obtain the required investment on the same timetable. Discussions are ongoing and a further announcement will be made as and when appropriate,’ said the chain.
On Monday it was revealed that Sports Direct, which owns 11% of House of Fraser, had offered to invest in the chain.